UPDATED: Fiber Construction Advances into New Zones, Communications Utility Reviews Progress

Your contribution today guarantees Decorah News is asking the questions tomorrow. Act now. DECORAH — Decorah's fiber-to-the-home project is entering a new phase as construction advances through residential zones, equipment arrives at the network's central facilities and officials prepare to connect the first test customers. The Decorah Communications Utility Board reviewed construction progress, project spending, financing projections and potential cost changes Tuesday. Board members approved three pay applications covering the completion of most construction in Zone 2, initial work in Zone 3 and fiber work at the city's library and central office. About 15% of the overall project had been invoiced following approval of the latest applications. Zone 2 was substantially complete, with about $868,000 invoiced against a projected design cost of $911,000, putting the zone roughly 5% under budget. Zone 3 was about 33% invoiced and was roughly one-third to one-half complete, with about 80 homes remaining. Construction was expected to finish by the end of the week, followed by splicing work. Zone 4 is expected to begin the following week. Potential cost increase The board also reviewed a request from West Union Trench, the project's contractor, for higher material prices on certain fiber cable. Two increases, involving BFO 144 and BFO 288 cable, were attributed to market changes since the project was bid in October 2024. The requested increases total about $45,000. The contractor also requested changes involving other materials and construction units. Engineers said some additional units resulted from design changes that allow multiple pipes to be drilled together, reducing labor costs. The board took no action on the proposed price increase. A formal change order is expected at a future meeting after further review by city legal and project representatives. Engineers cautioned that project costs could shift as crews encounter different construction conditions, particularly rock. The budget includes about 12,500 feet of rock drilling. Heavy-rock drilling in Zone 3 is below budget, while soft-rock drilling is near its allocated amount. The project has about $374,710 in overall contingency, although some of that cushion is already being used for construction changes and cost increases. Financing remains on track Michael Maloney, vice president of D.A. Davidson, told the board that loan draws are behind the original projections. He said the delay was expected because construction started later in the spring and is now ramping up during the summer. He expects draws to track closely with the original projections by the end of the year. The project's financial model uses conservative assumptions for utility revenue through June 30, 2027. The original projection assumed 480 internet bills during fiscal 2027, equivalent to 40 customers receiving a full year's service. If customers sign up faster than projected, Maloney said additional net revenue could be used for project costs, earlier debt repayment, reserves or a combination of those purposes. The financial outlook should become clearer as more customers are connected and actual revenue can be compared with projections. The model anticipates the utility generating enough revenue to cover about 60% of its debt by the end of fiscal 2032. First customers delayed The project's next major milestone is connecting its first test customers. City IT Director Chopper Albert said the central office is being brought online as remaining equipment and fiber work is completed. The project also plans to move a Cisco 9901 unit from the hospital to the library and central office, which will require an outage affecting MetroNet connections. Testing the first customers, originally expected during the week of the meeting, has been pushed back about a week to 10 days. The initial test group will consist of two customers: the central office and a residence on Center Avenue where access can be easily managed. If testing goes well, the group will expand before broader customer installations begin. The installation contractor expects to have three or four installers available, with capacity for roughly 12 to 16 installations per day once full installations begin. Damaged fiber discovered One of the project's most pressing technical issues involves an existing 72-count fiber cable near the high school. Crews discovered the problem while testing fibers before bringing test customers online. The cable appears to have been sharply bent inside a handhole, potentially affecting multiple fibers. The project plans to replace a section with 144-count cable and splice it across the existing 72-count fibers. Because the fiber is live and supports important network functions, officials warned that pulling new cable through the same conduit could disturb the damaged cable and cause an unplanned outage. The contingency plan includes mobilizing splicing crews and additional personnel if necessary. Affected infrastructure could include cellular sites and 911-related services. A scheduled cutover is planned for the following Wednesday, with crews prepared to respond sooner if the cable is disrupted. Officials said finding the damaged cable during testing is preferable to discovering the problem during an emergency. Downtown design underway Engineers are also working through design and inspection for the downtown portion of the network. Zone 1 mapping has been completed and sent to the fiber-design contractor for review. Officials expect an initial response within a week to 10 days, although the zone could take longer because of its complexity. Downtown contains significant existing fiber infrastructure, conduits and cables. The city owns some conduit that could potentially be reused, reducing construction costs. Engineers are evaluating a city-owned conduit running from near the post office toward Decorah Bank & Trust. Some of the conduit already serves other telecommunications users. Officials also noted that some downtown businesses paid for portions of fiber-related construction before or during the project. Work completed after October 2024 was not included in the original contract and will need to be accounted for separately. Home inspections continue Home inspections are progressing across the project zones. About 72% to 73% of homes in Zone 2 have received walkthroughs, compared with more than 75% in Zone 3, roughly the upper 50% range in Zone 4 and about 30% in Zone 1. The inspections help prepare properties for customer installations and identify access or construction issues before crews arrive. Albert said the process has generated questions and some complaints, including reports of sidewalk damage. In some cases, crews determined the damage appeared to predate fiber construction. Albert also reported positive coordination between West Union Trench and other utilities. Black Hills Energy recently provided refreshments to construction workers in recognition of their cooperation around utility locating and gas infrastructure. Customer interest remains uncertain The board has not established a firm percentage of households expected to subscribe to Decorah Fiber. Officials said residents continue to ask questions before deciding whether to participate. Some have expressed strong opposition to government involvement, while others who initially objected have become more receptive after learning more about the utility's structure and the telecommunications board. Officials said inspectors are also hearing positive comments from residents who are dissatisfied with existing internet providers, including reports of outages lasting several days in some areas. With Zone 3 nearing completion and Zone 4 preparing to begin, officials have not decided which zone will follow. The choice could depend on the pace of downtown work and how much time crews have after completing the next several weeks of construction. Zone 5 and a smaller zone are among the possibilities. Officials expect to have a better idea of the construction sequence at the board's next meeting, after seeing how the next four to six weeks develop. For now, the board characterized the project's progress as strong, with construction advancing into new zones, equipment arriving and the network approaching its first customer connections. *This article has been updated to include a map of the zone plan provided by The City of Decorah Your inbox, upgraded! 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